May 15, 2012
Shares of the ETF Market Vector Biotech (AMEX: BBH) have recovered from three months of sideways trading and have broken out to new highs. And this is during a market correction.
BBH had a 3 for 1 split back in February.
BBH is well above its March 3, 2000 rally closing high of $40.46 (pre-split it was $121.38). The bear market in 2000-2002 decimated all stock sectors and especially Biotech. Most sectors remain well below those 2000 highs, but BBH has now far exceeded them.
Chart Courtesy of StockCharts.com
BBH broke above its three months of sideways trading in the first week of April and while most sectors have stayed in correction mode, BBH has been moving steadily higher.
For those who see new highs as bullish, and we are on that list, BBH is a strong buy.
A stop at $44.50, just below the May 4 low, creates a tight stop and a low risk trade.
There is also very strong support at $42.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Market Vector Biotech.
Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market and the 2008-2009 bear market his bearish positions resulted in substantial gains, all achieved by trading trends.
Disclosure: I am long BBH.